Mercury Systems Inc
mrcy.comMercury Systems Inc (NASDAQ: MRCY) is a defense electronics company that designs, develops, and manufactures processing systems, subsystems, and components for aerospace, defense, and intelligence applications. Revenue comes from contracts to deliver hardware ranging from chip-scale components to fully integrated processing subsystems, with 53% of FY2025 revenues recognized at a point in time upon shipment or service completion and 47% recognized over time as performance obligations are met. RTX Corporation was the largest customer at 13% of total net revenues in FY2025, followed by Lockheed Martin and the U.S. Navy each at 10%. The company positions itself as a supplier of commercially derived electronics adapted for defense use, covering C4I systems, sensors, and electronic warfare, serving prime defense contractors and the U.S. government rather than competing directly with large defense primes. Net loss for FY2025 was $37.9 million, an improvement from a $137.6 million net loss in FY2024. The company is headquartered in Andover, Massachusetts, with facilities across the United States and international operations supplied through a contract manufacturing agreement with Cicor Group signed April 2025.
Products & Services
Processing subsystems, RF and microwave components, digital signal processing products, rugged avionics and electronics, active matrix liquid crystal display systems, avionics safety-certifiable subsystems, ASICs, and anti-tamper and cybersecurity software (via April 2025 acquisition of Star Lab from Wind River Systems). Products span chip-scale components through fully integrated processing solutions.
Revenue Model
Contract-based revenue from delivering defense electronics hardware and services. In FY2025 (fiscal year ended June 27, 2025), 53% of revenues were recognized at a point in time upon delivery of components, modules, sub-assemblies, or integrated subsystems, and 47% were recognized over time under long-term development and production contracts. Contracts include firm fixed price and cost-reimbursement structures.
Customers & Markets
Primary customers are U.S. defense prime contractors and the U.S. government. In FY2025, RTX Corporation accounted for 13% of total net revenues, Lockheed Martin 10%, and U.S. Navy 10%. In FY2024, L3Harris accounted for 12%, Lockheed Martin 11%, and RTX Corporation 10%. End markets include C4I systems, sensors, electronic warfare, and aerospace communications.
Geographic Exposure
Primarily U.S.-focused, with domestic production facilities in Hudson NH, West Caldwell NJ, Oxnard CA, Alpharetta GA, Torrance CA, Upper Saddle River NJ, Gulf Breeze FL, and Norcross GA. International manufacturing in Plan-Les-Ouates, Switzerland was sold to Cicor Group in April 2025, with Cicor contracted to supply international operations for five years.
Financial Snapshot
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